ZLATO – hodnota do budúcnosti

A swinging oil price together with currency vulnerability equals a surge in the gold price. Depending on the direction of the economic air currents, currencies float against each other, which is why many wise investors are exchanging fiat money (banknotes, etc.) for gold.

As gold is bought and sold in dollars, the gold price rises when the dollar and currencies linked to it lose ground. Gold's present longer-term climb began in August 1999 when it stood at $253. It has since put on 211%. From August 1999 to November 2005, the gold price rose 79%. The channel was then broken and a new channel formed. From November 2005 to date, the gold price rose 70%. The latest short-term rise from its August low is 31%. A strong buy signal, when the moving average convergence/divergence plotting crossed its own moving average, came in September.

As currencies prove vulnerable, calls have been made for an intrinsic commodity, for example gold, against which currencies are valued, rather than each other. But gold was linked to U.S. dollars between 1946 and 1971 when the gold standard was reintroduced with The Bretton Woods System. It pegged gold at $35/oz. Former U.S. president Richard Nixon released it, but then the price remained below $100/oz until 1973. Rising to a high of $184 in 1974, it flopped back to $110 in August 1976, when the massive 673% climb to its record $850 in January 1980 began. As the 87% surge took place over the holiday season, many investors were caught napping.

Abandoning the gold standard made it possible for welfare statists to use the banking system "as a means of unlimited expansion of credit". Without the gold standard, there is no way to protect savings from inflation.

Zdroj: InvestorP

20.12.2007

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value."   Alan Greenspan